India-China Summit this week opens up possibilities

New Delhi can get supply chain advantage via bilateral cooperation

By Nitya Chakraborty

Expectations are running high on the eve of Narendra Modi-Xi Jinping summit this week in New Delhi on the side lines of 18th BRICS summit on September 11 to 13. The bilateral trade has already risen to a record level of US$151.1 billion recording a growth of 18.31 per cent in 2025-26. There is some concern however in New Delhi about growing trade deficit of US$ 112.16 billion during the last financial year.

The Chinese foreign trade ministry officials have also taken note of this concern and there is move to ensure that India can get some additional advantages in global trade in the present geopolitical turmoil by tying up with China in some specific areas.

Experts point out that at time when global industrial chains remain volatile and the multilateral trading system faces mounting headwinds, developing countries more than ever need a cooperation platform that can deliver practical solutions and drive shared growth. It is against this backdrop that the BRICS cooperation mechanism has drawn renewed expectations. As two core BRICS members, China and India have massive economies and different industrial structures, and their bilateral economic, trade and industrial cooperation forms an integral part of broader BRICS progress.

Chinese foreign trade experts mention that the latest spurt in India-China trade is the natural outcome of the long-standing industrial complementarity between the two countries. India’s ongoing manufacturing expansion has generated steady demand for Chinese mechanical and electrical products, active pharmaceutical ingredients and industrial components.

At the same time, India’s agricultural products, mineral resources and characteristic consumer goods also have ample room to enter the Chinese market. The two-way movements of supply and demand have built a stable foundation for trade, proving that China-India economic and trade cooperation rests on a solid, realistic footing.

According to the latest issue of the Global Times, the official mouthpiece of Chinese government, manufacturing sector has got a big boost in India. In recent years, India has been vigorously promoting its manufacturing self-reliance. A more stable supply chain for intermediate goods and lower-cost cross-border trade facilitation arrangements would bring not only higher trade figures but also more local jobs and greater industrial chain efficiency.

So, the Chinese suggestion on the eve of BRICS summit is, if India uses this BRICS Summit as an opportunity to take a solid step forward in advancing China-India economic and trade collaboration, it would be a highly pragmatic and entirely rational choice aligned with its own development needs. More importantly, such a move would itself constitute India’s substantial contribution to BRICS cooperation.

GT analysis takes note that some may worry that deeper economic ties with China could worsen India’s trade deficit or lead to excessive reliance on China in certain strategic sectors. While such worries are understandable, the right way to address them is not through erecting barriers – it is through dynamic structural adjustments as cooperation deepens. The problem of the trade deficit between China and India has emerged gradually through development, and it will ultimately find its resolution in more robust development, says Global Times.

Chinese officials are saying that India can have access for its competitive goods and services in China, while setting reasonable transitional protection measures for strategically important industries. Cooperation is not about opening doors in one direction – it is about building smart, mutually beneficial interfaces. Both countries have sufficient economic heft and policy space to manage risks and ensure a broadly balanced outcome.

According to GT, in today’s complex and volatile global landscape, developing economies share a common ambition: to steer their own industrialization and modernization. The BRICS platform is a critical vehicle for that ambition. When China and India, the two major emerging market powers, move toward each other, manage differences, and deepen economic and trade ties through the BRICS mechanism, the gains will extend far beyond the two countries’ enterprises and people. They will also reinforce BRICS’ cohesion, empowering the group to keep delivering practical solutions to the development challenges facing the wider developing world. (IPA Service)